The Electricity (Competitive Tenders for Offshore Transmission Licences) Regulations 2013

Recovery of tender costs

29.—(1) The Authority shall recover its tender costs in relation to a tender round in accordance with the Authority’s cost recovery methodology published pursuant to regulation 11(4).

(2) The Authority shall give notice to the developer in respect of any payment or security required in accordance with these Regulations of–

(a) the amount of the payment or the nature of the security;

(b) the date and time by which it is to be made or provided; and

(c) the manner in which it is to be made or provided,

as calculated in accordance with the Authority’s cost recovery methodology.

(3) Any payment required in accordance with regulation 5(1), 7(1), 9(a), 17(2), 30(1) or (2) shall be made by a person within section 6D(2)(a) of the 1989 Act and not by a developer group.

(4) The Authority shall give notice to a bidder, qualifying bidder, preferred bidder or successful bidder in respect of any payment required in accordance with these Regulations of–

(a) the amount of the payment;

(b) the date and time by which it is to be made; and

(c) the manner in which it is to be made,

as calculated in accordance with the Authority’s cost recovery methodology.

(5) As soon as reasonably practicable after a tender round is finished, the Authority shall–

(a) calculate its total tender costs in relation to that tender round; and

(b) undertake an aggregation of–

(i) the payments made in accordance with these Regulations by a developer, bidder, qualifying bidder, preferred bidder or successful bidder and not repaid; and

(ii) the value of any security forfeited in accordance with these Regulations by the developer or person approved by the Authority with whom the developer has made arrangements in accordance with regulation 9(b),

in order to identify whether the total of the payments made and the security forfeited exceeds the Authority’s total tender costs in respect of that tender round.

(6) Where the total amount identified as a result of the aggregation undertaken in accordance with paragraph (5)(b) exceeds the total tender costs incurred by the Authority in respect of that tender round, the Authority shall as soon as reasonably practicable after that tender round is finished–

(a) repay wholly or in part any payment that has been made which exceeds the tender costs to any person in paragraph (5)(b)(i) who made the payment, including any interest which may have been accrued on the whole or part of that payment; and

(b) repay wholly or in part the security that has been forfeited which exceeds the tender costs to any person in paragraph (5)(b)(ii) who provided that security, including any interest which may have been accrued where that security provided is a monetary deposit,

in accordance with the Authority’s cost recovery methodology in relation to that tender round, so as to ensure that the Authority’s total tender costs have not been exceeded.

(7) As soon as reasonably practicable after an offshore transmission licence has been granted to the successful bidder in respect of a particular qualifying project, the Authority shall–

(a) release wholly or in part any security that has not been forfeited to any person in regulation 9(b) who provided that security, including any interest which may have been accrued where that security provided is a monetary deposit; and

(b) repay wholly or in part any payment that has been made which has not been used in accordance with regulation 17(2) to the person who made that payment, including any interest which may have been accrued on the whole or part of that payment.